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PERMIT#:M-1980-047 <br /> INSPECTOR'S INITIALS: ACY <br /> INSPECTION DATE: April 28,2021 <br /> OBSERVATIONS <br /> This inspection was conducted as part of the Colorado Division of Reclamation, Mining and Safety normal <br /> monitoring program. The Colony Oil Shale Project is a Hard Rock 112 permitted site located northwest of <br /> Parachute Colorado in Garfield County. The entire mine was inspected, both underground and surface facilities <br /> areas. Colony consists of 5,712.05 acres with a maximum disturbance of 527 acres. The Division currently <br /> holds a financial warranty in the form of a corporate surety in the amount of$9,500,000.00. Amy Yeldell and <br /> Travis Marshall of the Division conducted the inspection. David Bower and Kirk Homedew represented <br /> ExxonMobil and accompanied the Division on the inspection. <br /> ExxonMobil has continued its work into divesting the asset. Existing disturbances have been evaluated for <br /> options of repurposing rather than reclaiming where applicable. Several areas have the potential to be utilized <br /> for development of alternate forms of energy i.e. gas production, solar power generation, or pumped <br /> hydroelectric power. Additionally ExxonMobil may use undisturbed lands for livestock grazing, tree farming <br /> and hunting lease operations. The Operator is advised to release eligible undisturbed areas before implementing <br /> other land uses within the permit boundary. <br /> The Division briefly passed by the shop areas (Unit 4, 5, 19A). Support infrastructure remains in place. <br /> The Division inspected the underground mine workings (Unit 19B, 6, 6A). Kirk Black(Red) remained outside <br /> and in contact with Mr. Homedew throughout the underground portion of the inspection. All personnel had 4- <br /> way gas monitors and re-breathers on. Staff entered through the southern portal, to the cross cut and then exiting <br /> through the northern portal. Both the incline and decline were observed however staff did not access other <br /> levels. Limited equipment remains stored within the mine. No chemicals or other hazardous materials were <br /> observed. Water was observed flowing through the mine following designated BMP pathways. The mine bench <br /> pad remained empty. Portals were properly secured. No evidence of rock fall or instability was observed inside <br /> the mine or the walls surrounding the portals. <br /> Davis Gulch Dam (Unit 9). Construction of the dam was incomplete and holds significantly less water than <br /> originally authorized. The existing cofferdam areas appear stable and well vegetated. Steeper terrain near where <br /> the dam was to be constructed is mostly shale outcrops with limited vegetation. <br /> Coarse Ore Stockpile Area (Unit 17A) was observed. This has the potential to be used as a pond or water <br /> storage given its existing basin like structure. Mr. Bower indicated that it may also serve for development of <br /> alternate forms of energy. <br /> Switch yard (Unit 18A). 48KV powerlines and transformers remain in place. Service is not tied into the system <br /> nor has it ever been online. This area is being proposed as future development of alternate forms of energy <br /> location given its proximity to existing infrastructure. This would allow ExxonMobil to repurpose an existing <br /> disturbance for a beneficial use. <br /> Plant site (Unit 18E). This are consists of a cut pad area with both the floor and slopes adequately revegetated. <br /> A dry piezometer is also located in the middle. This area will likely be utilized for development of alternate <br /> forms of energy. <br /> Gondola site (Unit 18C) would have been the top of the conveyor from the incline bringing ore to the surface. <br /> This area is also flat and an ideal location for development of alternate forms of energy. Currently it is stabilized <br /> with native vegetation and appears stable. <br /> Page 2 of 9 <br />